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Assignment help 1001

“Market Structures” Please respond to the following:

•  Assume a startup health care company faces the following weekly demand and short-run cost functions:

VC = 20Q + 0.015Q2 with MC=20 + 0.03Q and FC = $12,000

P = 75 – 0.04Q and MR = 75 – 0.08Q

*Where price is in $ and Q is the number of patients per week. All answers should be rounded to the nearest whole number.

•  Algebraically, determine what price the company should charge in order for the company to maximize profit in the short run. Determine the quantity that would be produced at this price and the maximum profit possible.


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